EUR/USD Drops Further to Test 1.1270

The selling pressure is now gathering further steam around the euro, dragging EUR/USD to test lows in the 1.1270 region.

EUR/USD lower on USD buying

The
renewed bid tone surrounding the greenback has removed upside pressure
in the pair, forcing it to give away recent strong gains and abandon the
area of 2016 highs around 1.1470.

The daily decline remains
unabated so far, despite US Retail Sales and Producer Prices have missed
forecasts during last month, all amidst a solid performance of the
risk-associated space.

EUR/USD levels to watch

The
pair is now losing 0.89% at 1.1282 and a break below 1.1219 (38.2% Fibo
of 1.0820-1.1465) would expose 1.1158 (55-day sma) and then 1.1142 (low
Mar.24). On the other hand, the next hurdle lines up at 1.1465 (2016
high Apr.12) followed by 1.1496 (monthly high Oct.15 2015) and then
1.1713 (high Aug.24 2015).